To Rehab or Not – Real Estate

To Rehab or Not – Real Estate

There are two types of rehabbing when it comes to rehabbing a property. Partial and Gut. Partial rehabbing is where some portions are renovated. Gut rehab is where everything is taken down to bare minimum so as to redo the place completely.

The process of rehabbing depends on which category of preference you come under – namely personal, rental, and flip.

Most property owners/investors hire professional rehabbers for the simple fact that they do it a lot faster than the non-professional can.

Time is money: The faster the place is rehabbed the better. Every day spent in the process of rehabbing a property is a day without an earning.

Sample and proceed: If you are not sure what kind of rehabbing you require, consult with a local property expert first. Your real estate agent will know plenty of rehabbers. A known source is better than an unknown. If you do hire a new rehabber, give a sample area/project to work on, see how they do it and if it is according to your satisfaction proceed.

Gut rehab or partial rehab: If the previous tenants have totally disturbed the composure of the property, it is necessary for you as an investor to rehab it if you wish to find suitable long term/credit-worthy tenants or sell to the top buyer.

Again, whether or not to rehab a real estate depends on a few other factors like the market conditions, the kind of buyers you are looking for (they may want to do their own renovations, etc.). Unless you personally have experience rehabbing properties, it is recommended to leave the process to professional rehabbers.